12th Business-studies Paper Solutions Set 1 : CBSE All India Previous Year 2010

General Instructions:
(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may be from 50 to 75 words.
(iii) Answer to questions carrying 4-5 marks may be about 150 words.
(iv) Answer to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Q1 :

List any two personal objectives of management.


Answer :

The two personal objectives of management are listed below:

i. To provide competitive and deserving remuneration to the employees: This involves providing the employees with salaries and wages to ensure a competitive working environment in business.

ii. To ensure personal growth and development of employees: This involves motivating and encouraging the employees such that along with the realisation of organisational objectives, the personal growth of the employees also takes place.

Q2 :

Give any two reasons why principles of management are not rigid prescriptions.


Answer :

The following are two reasons why principles of management are not rigid prescriptions:

i. Flexibility- The principles of management can be applied to different situations as per the manager”™s discretion. This is because their applicability depends on the nature of the situation where they are being applied.

ii. Inexact cause-effect relationship- The principles do not have an exact cause-effect relationship, as they are behavioural in nature and the applicability differs.

Q3 :

Hero Ltd”™s target is to produce 10,000 shirts per month at a cost of Rs150 per shirt. The production manager could achieve this target at a cost of Rs160 per shirt. Do you think the production manager is “effective”™? Give reasons in support of your answer.


Answer :

Yes, the production manager is effective in his work as he was able to complete the assigned target on time. This is because effectiveness implies that the task is completed within the prescribed time limit. In the given situation, the manager has achieved the target of 10,000 shirts within the specified period of one month. Therefore, he is said to be effective. The cost of shirts does not play a role here.

Q4 :

State the objective of motion study.


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Q5 :

Give any one advantage of internal sources of recruitment.


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Q6 :

Name the method of training in which the trainee learns under the guidance of a master worker.


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Q7 :

Name any two essential ingredients of sound working capital management.


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Q8 :

Cost of debt”™ is lower than the “cost of equity share capital”™. Give reasons why even then a company cannot rely only on debt.


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Q9 :

Which Act of consumer protection provides safety to consumers against deficient services?


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Q10 :

Why is consumer protection important for business? Give any one reason.


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Q11 :

Define planning. List any two limitations of planning.


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Q12 :

Explain by giving any three reasons why decentralisation is important in an organisation.


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Q13 :

Explain when and why the need is felt for having a framework, within which managerial and operating tasks are performed to accomplish the desired goals. Name the 'framework' also.


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Q14 :

Explain the following money market instruments:

(a) Certificate of Deposit

(b) Call Money


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Q15 :

What is meant by “Product concept of marketing”™?


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Q16 :

Explain “Objectives”™ and “Strategy”™ as types of plans.


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Q17 :

Blue Birds Ltd. offers to its employees to issue shares at a price which is less than the market price.

(i) Name and explain the type of incentive offered to the employees.

(ii) Explain one more incentive of the same category.


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Q18 :

Explain the meaning of Financial Planning. Why is it important? Give any two reasons?


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Q19 :

State any two advantages and any two limitations of informal organisation.


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Q20 :

Explain the following 'Rights' of consumers:

(i) Right to be heard

(ii) Right to seek redressal


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Q21 :

Art is concerned with personal application of knowledge'. In the light of this statement, compare all the features of art with management and prove that it is an art.


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Q22 :

(i) Name and explain the principle of management in which workers should be encouraged to develop and carry out their plans for improvements in the organisation.

(ii) Name and explain the technique of scientific management which helps in eliminating unnecessary and diversity of products and thus results in saving cost.


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Q23 :

Explain by giving any five reasons why understanding of business environment is important for managers.


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Q24 :

State any five methods of floating new issues in the primary market.


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Q25 :

'An important task in the marketing of goods relates to designing the label as it provides useful and detailed information about the product'. In the light of the above statement draw a label for a packet of 'Juice' and highlight the important information to be provided on it.


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Q26 :

Explain “staffing”™ as a function of management. Also explain by giving any four reasons why proper staffing is required in an organisation.

OR

Explain the process of selection of employees.


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Q27 :

Leadership is a key factor in making any organisation successful”™. Do you agree with this statement? Give any four reasons in support of your answer.

OR

“Every action in the organisation is initiated through directing.”™ Explain any four points of importance of directing in the light of this statement.


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Q28 :

Explain the meaning of “Budgetary Control”™. Why is it considered an important technique of controlling?

OR

Explain any four points highlighting the importance of controlling.


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Q29 :

What is meant by “Financing Decision”™? State any four factors affecting the financing decision.

OR

What is meant by “Capital Structure”™? State any four factors affecting the choice of capital structure.


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Q30 :

Name the element of marketing-mix which affects the revenue and profits of a firm. Explain any five factors which help in determining this element.

OR

“Generally consumers prefer to buy goods directly from the producers, but it is not always possible”™. Give reasons by explaining four different factors responsible for this.


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